Share
News

Democrats Just Voted to Allow Biden-Backed IRS to Have More Control Over Americans' Banking Information

Share

The Senate on Tuesday rejected a measure introduced by Republican Sen. Mike Crapo of Idaho, ranking member of the Finance Committee, that would have prevented the Internal Revenue Service from having access to Americans’ private banking records.

The rule, which Crapo proposed as an amendment to Democrats’ $3.5 trillion budget resolution, was narrowly defeated 50-49 in a party-line vote.

It would have prohibited President Joe Biden’s administration from requiring financial institutions to report all transactions on accounts with a balance of more than $600.

Trending:
Prince Harry Named in Major Sex Trafficking Lawsuit Against Rapper

“The IRS financial institution reporting requirement forces financial institutions to turn over detailed bank account information to the IRS based on vague and ‘flexible’ criteria, such as a $600 threshold and account inflows and outflows, which are determined by the IRS,” Crapo said in a statement.

“This time-draining burden disregards banking privacy in order to squeeze more resources out of responsible Americans and entrepreneurs,” he continued.

“It subjects law-abiding Americans to more intense targeting from the IRS and additional data collection, a concern that was recently amplified by a leak of private taxpayer information out of the IRS.”

In June, investigative news outlet ProPublica obtained a vast amount of federal tax data of several extremely wealthy Americans. IRS Commissioner Charles Rettig warned that if an agency official was responsible for the leak, he or she would be prosecuted.

Should the IRS have access to Americans' private banking information?

While the White House condemned the illegal leak of tax information, it also criticized the individuals whose tax information was leaked for evading taxes. The administration also touted the president’s plan to increase funding for the IRS.

“There is more to be done to ensure that corporations, individuals who are at the highest income are paying more of their fair share, hence it’s in the president’s proposals, his budget and part of how he’s proposing to pay for his ideas,” White House press secretary Jen Psaki said in response to the ProPublica report.

The budget resolution making its way through Congress would provide the IRS with $80 billion in additional funding over the next decade to fight tax avoidance.

Much of the funding will go toward hiring about 87,000 new workers, Politico reported.

The regulation targeted by Crapo’s amendment was introduced as part of the broader goal to clamp down on tax evasion, Rettig said during a Finance Committee hearing in June.

Related:
IRS to Begin Mailing Compliance Letters to Over 100,000 Americans, Action Made Possible by Biden's Inflation Reduction Act

“I have long been critical of big data collection activities, and oppose turning banks and brokers into government tax collectors,” Crapo said.

“My amendment prevents the undue monitoring and reporting of sensitive American taxpayer information to the IRS by financial institutions about deposits and withdrawals made by any individual or business.”

Americans for Tax Reform, the Independent Community Bankers of America, the Credit Union National Association, the American Bankers Association and the National Association of Federal Credit Unions all endorsed the Idaho Republican’s amendment.

“CUNA remains concerned about the effect this proposed new requirement will have on credit unions,” CUNA President Jim Nussle wrote in a letter supporting Crapo’s amendment.

“Privacy and data security are paramount issues.”

The massive multitrillion-dollar legislative package would ultimately allow the IRS to “audit and harass taxpayers,” according to ATR.

Democratic Sen. Elizabeth Warren has been a vocal proponent of proposals that would give the IRS greater access to Americans’ financial information, according to ThinkAdvisor.

In May, the progressive Massachusetts senator vowed to author legislation that would force banks to share their customers’ account balances and other sensitive information with the federal government upon request.

Content created by the Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of the DCNF’s original content, please contact licensing@dailycallernewsfoundation.org.

A version of this article appeared on the Daily Caller News Foundation website.

Truth and Accuracy

Submit a Correction →



We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:
, , , , , , , , , ,
Share
Founded by Tucker Carlson, a 25-year veteran of print and broadcast media, and Neil Patel, former chief policy adviser to Vice President Dick Cheney, The Daily Caller News Foundation is a 501(c)(3) non-profit providing original investigative reporting from a team of professional reporters that operates for the public benefit. Photo credit: @DailyCaller on Twitter




Conversation